Highlights

© Sebastian Kaulitzki, Fotolia

Finance ministers meeting at the Ecofin Council on 17 November adopted legal texts establishing four European financial supervisory bodies, to operate as from January 2011. Furthermore, they discussed the follow-up to the October European Council and the outcome of the recent G20 summit.

The regulations adopted set up a European Systemic Risk Board to warn of systemic risks in the financial system and three Supervisory Authorities (for banking, securities and insurance) for micro-prudential supervision of the financial sector. The new bodies will be part of a European system of financial supervisors, which will include the supervisory authorities of the member states. They will be located in London, Paris and Frankfurt, respectively. The aim of this reform, which is one of the priorities of the Belgian Presidency, is to eliminate deficiencies that were exposed during the recent crisis on global financial markets.

As regards the follow-up to the European Council, in particular the strengthening of economic governance, ministers decided to set up immediately a working group to discuss legislative proposals from the Commission, with a view to ending the process by June 2011, as requested by the European Council.

Ministers also welcomed the outcome of the G20 summit held on 11 and 12 November in Seoul as a step forward in addressing global economic imbalances and in reforming financial regulation.

More information:
Press release (pdf)
Webcast of press conference